Is anybody known how can I get to know how much the bank will evaluate the property that I am going to buy before I sign the MOU?
I have the pre approval from the bank to finance 80% of the property value. Next step: the bank will evaluate the value of the property.
My concern is how if the bank evaluates that property much lower than the price I have to pay, remember that I have very limited cash. While at the same time I have to sign the MOU to secure my booking, and I will lost my deposit suppose I cancel the agreement in case I can't go with the bank evaluation.
Any body can help me out with this?
I will appreciate any opinion may come.
I understand your dilemma, obviously you wouldn't want to lose your deposit or monies paid towards buying the property. I would recommend getting in touch with your financial institution/mortgage adviser and have a general discussion with them regarding your situation. You can also mention that you are thinking of buying a property in a particular building and what is the going value for the property according to the institution.
Alternatively you can also present your scenario to the selling party and perhaps if both the seller and you can mutually consent to putting a clause in the MOU that in case your lending institution evaluates the property below your limit then the deal will collapse and the funds will be refunded whereas in the meanwhile when the evaluation is being carried out and before the finance is approved the funds will be held with the agent, neither the buyer or seller.
Just for you assurance, it has hardly been a case where the bank has evaluated a property below the market rate. So another wise thing to do would be to contact a few other agents and verify the selling value of the property. If some of them can confirm that the value you are getting is fine then you are playing it safe. After all just think about it, who evaluates properties for the banks, of course the real estate agents.
I hope that some of these options will be of help and all the best with your purchase.
In this case the bank will finance which ever is lower, how ever the evaluation will show u if u are buying with reasonable price or not and my advice to you is to make the evaluation before signing the MOU so in case you are not able to pay the deference, you ll lose only the bank administration fee and evaluation fee instead of loosing the down payment
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